MGST 391 Lecture Notes - Monopolistic Competition, Demand Curve, Marketing Mix
28 Apr 2013
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Document Summary
Price is the sum of the values that consumer exchange for the benefits of having or using the product. Prices are not revised often enough to reflect market changes. Prices do not take into account the other elements of the marketing mix. Prices are not varied for different products, market segments, and purchase occasions. Internal factors affecting pricing decisions: marketing objectives, marketing mix strategies, costs, organizational considerations, marketing objectives, survival, current profit maximization, market share leadership, product quality leadership, other objectives. To create excitement or draw attention of new customers. To help the sale of other product in product line: marketing mix strategy: Price decisions must be coordinated with product design, place, and promotion decisions to form a consistent and effective marketing program. Companies often make their pricing decisions first and then base other marketing-mix decisions on the prices that they want to charge.
